Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Dollar recovers slightly ahead of payrolls, earnings support stocks

Stock Markets Feb 03, 2017 04:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A woman walks past the London Stock Exchange building in the City of London, Britain
 
MS
-0.97%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-0.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
+0.98%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-1.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Vikram Subhedar

LONDON (Reuters) - The dollar recovered from 12-week lows but was poised for a fourth straight weekly loss in cautious trading on Friday ahead of U.S. payrolls data while a set of healthy corporate results underpinned gains across European equity markets.

Earlier in the day, an unexpected tightening of policy by China's central bank put Asian markets, already on the back foot on growing concerns about U.S. President Donald Trump's aggressive policies, under further pressure.

While a set of well-received corporate results helped prevent the weakness from spilling over into European stocks, the focus now shifts to the U.S. labor market report, which comes ahead of next week's U.S. Federal Reserve rate decision.

The dollar rose to its session high against a basket of six major currencies, with the dollar index up 0.17 percent to 99.962.

According to a Reuters survey of economists, nonfarm payrolls probably increased by 175,000 jobs last month, picking up from the 156,000 jobs added in December. The unemployment rate is expected to be unchanged at 4.7 percent in January, near a nine-year low.

"The next hurdle for the USD to overcome is the Fed," said analysts at Morgan Stanley (NYSE:MS), led by strategist Hans Redekker, in a note to clients, adding, however, that conditions for a resumption of the dollar to resume its rally have improved.

Reiterations of continued monetary policy in Europe, the Bank of Japan's commitment to control the JGB yield curve and weaker yuan fixings by the People's Bank of China, are "three pluses" for the US dollar, Morgan Stanley said.

Also, in FX markets sterling steadied after its worst fall since October while the euro was set for its sixth week of gains in seven, at $1.0745 and having gone as high as $1.0829 after the latest signs growth and inflation is rising in the euro zone.

A healthier outlook for the euro zone economy and for its banks has lifted analyst sentiment on regional corporate results to its brightest in 6 years.

Meanwhile, in commodities oil prices edged up on threat of U.S. issuing new Iran sanctions while comments by Russian energy minister Alexander Novak that oil producers had cut their output in accordance with a pact agreed in December also helped support prices.

Brent crude futures were up 17 cents, or 0.3 percent, to $56.72 a barrel. Brent is set to gain more than 2 percent for the week.

Front month U.S. West Texas Intermediate crude futures climbed 15 cents, or 0.3 percent, to $53.69 a barrel.

London copper fell, however, after China's policy tightening spooked metals markets.

Dollar recovers slightly ahead of payrolls, earnings support stocks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email